Increase Your Credit Rating With 4 Simple Ways

4 Steps to Increase Your Credit Rating 4 Steps to Increase Your Credit Rating

Increase Your Credit Rating With 4 Simple Ways

A good credit score can serve as a gold ticket for a variety of future life events. It can help you to build a financially secure, and successful future. A good credit rating opens a number of doors such as employment opportunities, fair interest rates, and the list goes on. But while it’s just simple math, in order to increase your credit rating you should comply on a specific behavioral pattern. There are few key tips to help you get a decent credit score, but the most important is by far your consistency. In the following lines, you’ll read for few easy-to-follow steps that will help you increase your credit rating over the time. Ready, set, scroll!

4 Steps to Increase Your Credit Rating

1. Get your free, annual credit report, and read it thoroughly 

Step one to increase your credit rating is to know exactly where you stand. Once you’ll receive your credit report, spend a decent amount of time to go through all the details carefully, so you can spot any listed mistakes. Wrong names or dates, bank accounts or credit cards you don’t recognize, false claims of late payments etc., are some of the most common suspects. Don’t hesitate to contact any company and request details, or write a credit dispute letter to correct or remove any negative items. 

2. Make your payments on time, every time 

Payment history makes approximately the 35% of your credit report, and is the number one factor for a good credit score. If you want to increase your credit rating, then it is mandatory that you start paying your bills on time, every time! Sometimes you miss payments because you simply forget them. Take a turnaround and organize your payments. Set up automated online payments for those who support them, and mark your calendars for the due dates. It will only take few months of a good payment pattern to yield some results and improve your credit score. On the other hand, there will be times that you’ll be unable to pay on time because hey, life happens and money come and go. In this case, try to keep your late payments to 30 days maximum. Usually, creditors and lenders report only 60 days late payments, and not earlier.

Consistency is the Key to Improve Your Credit Rating 

3. Pay off your debts 

You want to portray yourself in from of creditors and lenders, as someone who is confident, consistent, and capable enough to pay back the money you borrowed. One more way to do that and increase your credit rating, is to pay off your debts if any. The sooner you’ll get rid of your debts, the better for your credit score. Start by paying more than the minimum payments whenever is possible. 

4. Don’t get more credit than you can afford 

What would you think if someone has a lot of credit accounts? Exactly! That he keeps adding debt on his head, that eventually he will fail to pay it back. This is the exact thought your lenders make as well when they see you crammed up with loads of credit accounts. 

It’s not impossible to increase your credit rating, but it can be hard. If you find yourself struggling to do that alone, then seek for professional help from a credit repair company. Get in touch with Baby Boomers Financial for a free credit review